Steel ETF Slips 0.1% as Ternium Falls 1.7% | Steel, Oct 6
Latin American steel shares fell on 6 October as cheap Chinese imports and weak demand weigh on margins. Ternium, Gerdau and CSN all lost ground in New York. The post Steel ETF Slips 0.1% as Ternium Falls 1.7% | Steel, Oct 6 appeared first on The Rio Times .
On Tuesday, 6 October, Latin American steel shares experienced a slight decline. Ternium fell 1.73% to US$56.97, Gerdau decreased by 0.97% to US$5.12, and CSN dropped 0.81% to US$1.23. The global steel producers fund SLX only declined marginally by 0.09% to US$105.04, which made the region's shares lag behind the global market.
The primary reason for this downturn is the presence of cheap imports, largely supplied by Chinese mills. The Latin American Steel Association, known as Alacero, mentions that Chinese mills account for a significant portion of the region's imports. Despite tariffs being implemented, they do not entirely alleviate the pressure.
In August, China's crude steel output dropped by 3.7% compared to the previous year, reported by the National Bureau of Statistics. A decrease in Chinese production could lead to an increase in exports of cheap steel to other regions, including Latin America.
Alacero's projections for November 2025 indicate that imports in Latin America could reach 39.7% of the steel consumption, with Chinese mills contributing 45.4% of those imports. The industry believes that Brazil and Mexico need to strengthen their trade defenses. Brazil's quota-and-tariff system, which currently imposes a 25% rate above quotas, is considered insufficient by Aço Brasil.
The Steel, Oct 6 ETF saw a minimal decrease of 0.09% to US$105.04. Ternium fell by 1.73% to US$56.97, Gerdau declined by 0.97% to US$5.12, and CSN slipped by 0.81% to US$1.23.
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